The Delineation of the Islamic Accounting Concepts through the Narrative Reviews Intrepretation

Norazita Marina Abdul Aziz* and Dr. Fadzila Azni Ahmad
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Norazita Marina Abdul Aziz*: School of Languages, Civilisation and Philosophy, Universiti Utara Malaysia, 06010 Sintok, Kedah
Dr. Fadzila Azni Ahmad: Centre for Islamic Development Management Studies (ISDEV), Universiti Sains Malaysia, Malaysia

The Journal of Social Sciences Research, 2018, 348-352 Special Issue: 6

Abstract: Islamic accounting records the Islamic business transactions through the adoption of International Accounting Standards (IAS). To harmonise the Islamic accounting principles and rules with IAS, some of the paragraphs in the IAS, which deviates the Islamic fundamental law, will be deleted, omitted or disregarded based on the relevancy of its usage. Similarly, the application of the conventional conceptual framework is fully adopted based on the acceptance of the universal law of the peoples’ in outlining the elements consists in qualitative characteristics. However, Islamic accounting is founded within the foundation of Shariah Law.In line with this, questions arise pertaining to the Islamic accounting fundamental principles within the Islamic philosophical stances consisting tasawur, ontology, epistemology and axiology. Thus, this paper aims to evaluate the appropriateness of Islamic accounting concepts in adopting-modifying strategies from the conventional accounting framework. The narrative reviews approach was employed in undertaking the literature search for selected articles based on the inclusion and exclusion criteria. The goal of narrative reviews is to identify common themes across research regarding a particular subject that then can be used to identify commonalities and critical differences among included documents. The paper utilises interpretive inquiry of the texts mainly from the al-Quran, Hadiths and other related literatures in the research area. The findings reveal the Islamic accounting concepts, which includes characteristics, principles and elements, has to be aligned with the Islamic Shariah Law. From the narrative review, the Islamic accounting concepts emphasise on the relationship to Allah, relationship to human through social welfare, social justice, loyalty, trustworthiness, accurate weightage, full disclosures, timeliness, monetary values and clarity. The important elements prohibited in Islamic transactions includes activities related to deprived interest (riba), gambling (maisir), uncertainty (gharar), and haram commodities such as pork and alcohol. In summary, the Islamic accounting concepts has to be developed within the Islamic epistemological stances with reference to the exegesis stipulated in the al-Quran, and Hadith through the derivation from the narrative review approach.

Keywords: Islamic accounting; Islamic philosophy; Islamic accounting principles; Islamic accounting concepts; Narrative synthesis. (search for similar items in EconPapers)
Date: 2018
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